The U.S. Senate Committee on Banking, Housing and Urban Affairs’ Ranking Member, Senator Elizabeth Warren, wrote to U.S. Treasury Secretary Scott Bessent seeking confirmation that the Treasury Department will not use the Exchange Stabilization Fund (ESF) to provide taxpayer guarantees or backstops for hedge funds and other financial institutions pursuing investments connected to Venezuela following President Trump’s military action, which Warren described as illegal. The letter cites reports that hedge funds and other financial institutions are exploring investment opportunities in Venezuela and notes that President Trump has suggested taxpayers could reimburse oil companies for expenses related to Venezuelan oil operations, alongside a Department of Energy disclosure that it has engaged banks to provide financial support for crude oil sales. Warren also pointed to prior ESF use that she said benefited investors, including an October USD 20 billion swap line with the Central Bank of Argentina and purchases of more than USD 1 billion in Argentine pesos, as well as reported efforts to arrange a USD 20 billion Argentina-focused investment vehicle funded by U.S. banks that included discussions of potential taxpayer guarantees. Warren requested Treasury provide written confirmation by January 20, 2026.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2026-01-13
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member presses Treasury to rule out Exchange Stabilization Fund backstops for Venezuela-related investments
Senator Elizabeth Warren has requested U.S. Treasury Secretary Scott Bessent confirm that the Treasury will not use the Exchange Stabilization Fund to support hedge funds or financial institutions investing in Venezuela following President Trump's military action. Warren highlighted concerns over potential taxpayer guarantees for such investments and cited past ESF activities benefiting investors, requesting a response by January 20, 2026.